The Great Depression Flashcards
What were the five causes of the Great Depression
1) unequal distribution of wealth
2) over production in industry
3) high tariffs: (international trade taxes)
4) easy credit: debt
5) stock market crash *** official start
Caused by “buying on the margin”
What is that
Borrowing money to invest
What happened 1 year later after “buying on the margin”. ?
People panicked and there was a “run in the bank” which led to banks closing
What was the official beginning of the Great Depression
Stock market crash
Shanty towns (unemployed) ?
“Hoovervilles”
US president at beginning was?
Herbert Hoover
What was the bonus army?
WWI vets who were promised a bonus in advance, but needed it NOW, so they marched on the capitol
Who was the democrat who blew Hoover out of the water in the election of 1932?
Franklin D. Roosevelt
What was first thing Roosevelt did as president?
Emergency Bank act: national bank holiday- closed for 5 days
To stabilize the banks
Encouraged people to put money back into banks
What were fireside chats?
Roosevelt talked with the people over the radio
Brain trust-
Group of the leading scholars/businessmen- cabinet (advisors)- how to get out of depression?
Cabinet comes up with new deal, which was?
A set of federal economic programs centered around the 3 R’s
What were the three R’s?
A. Relief- gave temporary help for the suffering and unemployed Americans
B. Recovery- designed to help the economy bounce back from the depression
C. Reform- targeted the causes of the Depression and sought ways to prevent it from happening again.
More specifically from the 3 R’s, what 4 things did the government begin doing?
- Public Works program- JOBS mainly building things
- Federal emerging relief program- gave small amounts of money to people until they got work
- Federal assistance for farmers, business, and banks
- *social security programs- set aside money for people’s retirement
Did the programs work?
Yes and no, they slowed the depression, but did not end it
